- The British Pound after trading as low as 143.35 against the Japanese Yen formed a base for an upside move.
- The GBP/JPY pair moved higher, and broke a descending channel pattern at 144.38 on the hourly chart.
- Today in Japan, the Coincident Index for March 2017 released by the Cabinet Office posted a decline from the last revised reading of 115.2 to 114.4.
GBP/JPY Technical Analysis
The British Pound was under pressure earlier this week, as it traded towards 143.60 against the Japanese Yen.
Later, the GBP/JPY pair found support near 143.40-50 and started an upside move. Recently, the pair gained traction and was able to break a descending channel pattern at 144.38 on the hourly chart.
It has opened the doors for more gains, as the pair already traded to 145.39.
GBP/JPY Hourly Chart
At the moment, the pair is correcting lower, and testing the 38.2% Fib retracement level of the last wave from the 143.75 low to 145.39 high at 144.75.
The stated 144.75 support holds a lot of importance, and can be considered as a pivot level.
If the pair holds 144.75, it may bounce back above 145.00. On the other hand, a break below 144.75 could ignite a move towards the 61.38% Fib retracement level of the last wave from the 143.75 low to 145.39 high at 144.37 or even 144.20.
Japan’s Coincident and Leading Economic Index
Today in Japan, the Leading Economic and Coincident indexes for March 2017 were released by the Cabinet Office. The market was expecting the Coincident index to increase from 114.6 to 115.0.
The actual result was a bit lower than the forecast, as the index came in at 114.4. The last reading was revised higher to 115.2. So, there was a net decline of 0.8 points.
On the other hand, the Leading Economic Index posted a rise from the last revised reading of 104.7 to 105.5 in March 2017.
It looks like the GBP/JPY pair may hold the 144.75 support and could trade higher towards 145.40 in the near term.